Zama Partners with Elliptic to Make Confidential Finance Compliant by Design

Zama is partnering with Elliptic, the global leader in blockchain intelligence, to bring trusted compliance screening to confidential financial applications.

This is a milestone for a simple reason: institutions will not adopt confidential finance unless it meets the compliance standards of regulated markets. With Elliptic, it does.

Confidentiality and compliance are not opposites

Public blockchains expose everything. Every balance, every transaction amount, every position, visible to anyone watching the chain. No financial institution can operate that way, and no serious user should have to.

Zama solves this with Fully Homomorphic Encryption (FHE). Balances and transaction amounts stay encrypted end to end, while the network itself remains public, composable, and auditable. Only what needs to be confidential is confidential. This is what separates Zama from mixers and anonymity tools, and it is why confidentiality on Zama aligns with regulatory expectations rather than working against them.

But confidentiality alone is not enough. Institutions also need to know they are not transacting with sanctioned or high-risk counterparties. Protecting sensitive financial information should never come at the expense of enabling illicit activity. Zama was built with the expectation that confidentiality and responsible risk management must evolve together.

What Elliptic brings

Elliptic's blockchain intelligence is trusted by more than 700 institutions globally. As the first step in the collaboration, Elliptic will support wallet risk screening for the Zama app and future confidential financial products.

The implementation is designed around strict confidentiality boundaries:

• Elliptic performs risk screening on wallet addresses only.
• No encrypted balances, transaction amounts, or other sensitive financial information is ever exposed.
• Where a wallet is identified as high risk, institutions can apply appropriate compliance controls before the user enters the confidential application.

Compliance workflows run where they should. Confidentiality guarantees hold where they must. That is what compliant by design means in practice.

"Institutional adoption depends on trust. Financial institutions shouldn't have to choose between protecting sensitive financial information and meeting compliance obligations. Confidential finance must deliver both. Our collaboration with Elliptic is an important step toward making compliant confidential finance a reality for institutions building on public blockchains," said Rand Hindi, CEO and Co-founder of Zama.

"For institutions to move real financial activity onto public blockchains, confidentiality and compliance have to work together rather than against each other. Zama is building confidential finance with compliance in scope from the start, and we are glad to support that by screening wallets for risk before a transaction proceeds. It is a model for how confidential finance can meet the standards regulated markets expect," said Jackson Hull, CTO and COO at Elliptic.

Live today in Confidential DeFi

The first confidential financial application protected by this collaboration is already live: the confidential USDC Prime vault, developed by Steakhouse Financial and powered by Morpho on Zama. This initial application demonstrates how the same approach can support future confidential vaults and financial applications powered by Zama, enabling institutions to access confidential financial products while preserving the compliance controls they require.

What's next

As Zama extends confidential finance to more use cases, the need for trusted blockchain intelligence grows with it. Zama will continue collaborating with leading infrastructure providers to establish the technologies, operational models, and industry standards that confidential finance needs to reach institutional scale.

Compliant confidential finance is not a compromise. It is the foundation institutions have been waiting for.

Additional links

• Start using confidential tokens on the Zama app
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